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▼ Toyota Union Likely To Give Up Demand For Base Pay Raise

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The Toyota Motor Workers’ Union has begun to make adjustments to shelve its demand that Toyota Motor Corp. raise the level of base pay across the board next year, sources said.

It would be the first time in eight years for the union not to include the demand in the shunto spring wage negotiations.

The union, which has about 69,000 members, has likely taken into consideration the surge in novel coronavirus cases worldwide in addition to the intensifying competition in developing autonomous and electric vehicles.

Since Toyota workers’ wages are already at a high level, the labor union may be shifting the focus of its negotiations to other demands such as work style reform and aiming to get the maximum beneficial response from management.

The union is expected to present its policy to members in January on what demands it will make during the 2021 shunto and its official decision will be made around early February.

During the 2020 shunto, the Toyota management did not give a base pay raise for the first time in seven years. Because the union is unlikely to demand the raise next year, Toyota workers will likely have no across-the-board wage increase for the second year in a row.

Toyota has forecast that its consolidated net profit for the business year ending March 2021 will be ¥1.42 trillion, a 30.3% decrease from the previous year.
 


 

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